10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM 10-Q

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

           For the quarter ended September 30, 2016

           OR 

[  ]       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

Commission file number 000-53616

Incoming, Inc.(Exact name of registrant as specified in its charter)
Nevada(State or other jurisdiction of incorporation or organization)
244 5^th Avenue, Ste V235

New York, NY 10001(Address of principal executive offices, including zip code.)
(800) 385-5705 (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  YES [X]    NO [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-Y (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES [X]    NO [  ]

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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "small reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer  [   ]	Accelerated filer  [   ]
Non-accelerated filer  [   ]	Smaller reporting company  [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).   Yes   [  ]      No   [X]

As of November 14, 2016, there are 31,774,332 shares of Class A common stock and 1,980,000 shares of Class B common stock outstanding.

All references in this Report on Form 10-Q to the terms "we", "our", "us", the "Company", "ICNN" and the "Registrant" refer to Incoming, Inc. unless the context indicates another meaning.

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ITEM 1. FINANCIAL STATEMENTS

Index to the Unaudited Consolidated Financial Statements	3
UNAUDITED CONSOLIDATED BALANCE SHEETS	4
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS	5
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS	6
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS	7

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INCOMING, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	September 30, 2016			December 31, 2015
ASSETS
Current Assets
Cash	$	1,394		$	71,496
Accounts receivable, trade, net		222			250
Accounts receivable, related party		-			57,205
Inventory		12,065			15,318
Prepaid expenses		8,834			5,131
Other current assets		400			400
Total current assets		22,915			149,800
Property and equipment, net		567,797			624,787
Total Assets	$	590,712		$	774,587
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	212,097		$	205,496
Current maturities of debt		5,782			3,286
Accrued liabilities		61,597			61,320
Accounts payable – related parties		276,178			276,178
Total current liabilities		555,654			546,280
Total Liabilities		555,654			546,280
Capital stock $.001 par value; 200,000,000 shares authorized
Class A – 31,774,332 shares issued and outstanding, respectively		31,774			31,774
Convertible Class B – 1,980,000 shares issued and outstanding		1,980			1,980
Additional paid in capital		6,482,070			6,482,070
Accumulated deficit		(6,480,766	)		(6,287,517	)
Total Stockholders' Equity		35,058			228,307
Total Liabilities and Stockholders' Equity	$	590,712		$	774,587

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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INCOMING, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended September 30, 2016			Three months ended September 30, 2015			Nine months ended September 30, 2016			Nine months ended September 30, 2015
Revenue	$	658		$	18,914		$	47,477		$	44,338
Revenue from related parties		74,585			34,624			98,945			58,424
Total revenue		75,243			53,538			146,422			102,762
Cost of revenue		110,782			115,371			195,588			301,113
Depreciation		19,024			23,304			56,990			74,674
Gross loss		(54,563	)		(85,137	)		(106,156	)		(273,025	)
Selling, General, and Administrative Expenses		46,265			37,427			87,289			436,446
Loss from Operations		(100,828	)		(122,564	)		(193,445	)		(709,471	)
Other income (expense)
Grant and other income		558			119			720			629,997
Interest expense		(147	)		(111	)		(524	)		(1,051	)
Total other income (expense)		411			8			196			628,946
Net  Loss	$	(100,417	)	$	(122,556	)	$	(193,249	)	$	(80,525	)
Net  Loss per Class A Common Share (Basic and Diluted)	$	(0.00	)	$	( 0.00	)	$	( 0.01	)	$	(0.00	)
Net  Loss per Class B Common Share (Basic and Diluted)	$	(0.05	)	$	(0.06	)	$	(0.10	)	$	(0.04	)
Weighted Average Number of Class A Common Shares Outstanding (Basic and Diluted)		31,774,332			31,774,332			31,774,332			31,325,614
Weighted Average Number of Class B Common Shares Outstanding (Basic and Diluted)		1,980,000			1,980,000			1,980,000			1,980,000

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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INCOMING, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine months ended September 30, 2016			Nine months ended September 30, 2015
Cash Flows from operating Activities
Net  (loss)	$	(193,249	)	$	(80,525	)
Adjustments to reconcile net loss
to net cash provided by operations:
Depreciation		56,990			74,674
Stock-based compensation		-			350,000
Changes in operating assets and liabilities
Accounts receivable		28			2,504
Accounts receivable – related party		57,205			(34,037	)
Prepaid expenses		8,091			1,463
Inventory		3,253			(18,357	)
Accounts payable		6,601			(22,257	)
Accrued liabilities		277			5,478
Net cash provided by (used in) operating activities		(60,804	)		278,943
Cash flows from investing activities
Purchase of fixed assets		-			(23,268	)
Net cash used in investing activities		-			(23,268	)
Cash flows from financing activities
Proceeds from related party debt		-			105,929
Payments on related party debt		-			(105,929	)
Principal payments on debt		(9,298	)		(26,632	)
Net cash used in financing activities		(9,298	)		(26,632	)
Net cash increase (decrease) for period		(70,102	)		229,043
Cash at beginning of period		71,496			344
Cash at end of period	$	1,394		$	229,387
Supplemental disclosure of cash flow information
Cash paid for interest	$	524		$	1,051
Cash paid for income taxes	$	226		$	493

Non-cash financing transactions
Prepaid expense financed with notes payable	$	11,794	$	7,071
Write-off of fully depreciated assets	$	-	$	134,830

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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INCOMING, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1Basis of Presentation, Organization, and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements of Incoming, Inc., a Nevada corporation, have been prepared in accordance with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim financial information and, therefore, do not include all disclosures normally required by generally accounting principles accepted in the United States of America. These statements should be read in conjunction with the Company's most recent annual financial statements for the year ended December 31, 2015 included in our Annual Report on Form 10-K filed with the SEC on April 12, 2016. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying financial statements for the period ended September 30, 2016 are not necessarily indicative of the operating results that may be expected for the full year ending December 31, 2016.

Organization

Incoming, Inc. ("we" or the "Company") was incorporated on December 22, 2006 in Nevada.  Through our wholly-owned subsidiary North American Bio-Energies LLC ("NABE"), we operate in the alternative energy industry in the development and acquisition of commercial grade biodiesel facilities and the distribution and marketing of petroleum and biofuel products. In addition to operating as NABE, our subsidiary also does business as Foothills Bio-Energies, LLC ("Foothills").

Note 2Going Concern

These financial statements have been prepared on a going concern basis.  As of September 30, 2016, the Company had a working capital deficiency of $532,739, and had an accumulated deficit of $6,480,766.  Its ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.  The outcome of these matters cannot be predicted with any certainty at this time. These factors raise substantial doubt that the Company will be able to continue as a going concern.  The Company to date has funded its initial operations through the issuance of capital stock and common stock options, loans from related parties, and revenue generated in the normal course of business. Management plans to continue to provide for its capital needs by the issuance of common stock and related party advances.  These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.

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Note 3Related Party Transactions

NABE sells a portion of its finished goods to Echols Oil Company, a company owned by our CEO, R. Samuel Bell, Jr. During the nine months ended September 30, 2016, the Company had sales to the related company totaling $98,945. As of September 30, 2016, the Company had no outstanding receivables from the related party company. As of September 30, 2016, the Company had outstanding payables to Echols totaling $1,262, and had $274,916 in related party payables to Green Valley Bio-Fuels.  Green Valley Bio-Fuels is considered a related party since it is majority-owned by Mr. Frank A. Gay, who sits on the Company's Board of Directors.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

THE FOLLOWING DISCUSSION OF THE RESULTS OF OUR OPERATIONS AND FINANCIAL CONDITION SHOULD BE READ IN CONJUNCTION WITH OUR FINANCIAL STATEMENTS AND THE NOTES THERETO INCLUDED ELSEWHERE IN THIS REPORT.

This section of the report includes a number of forward-looking statements that reflect the Company's current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: "believe," "expect," "estimate," "anticipate," "intend," "project" and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this annual report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.

The following discussion provides an analysis of the results of our operations, an overview of our liquidity and capital resources and other items related to our business.  The following discussion and analysis should be read in conjunction with our unaudited consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q and our audited financial statements and notes included in our Annual Report on Form 10-K as of and for the year ended December 31, 2015.

Overview

Company references herein are referring to consolidated information pertaining to Incoming, Inc., the registrant.

The following discussion is an overview of the important factors that management focuses on in evaluating our businesses, financial condition and operating performance and should be read in conjunction with the financial statements included in this Quarterly Report on Form 10-Q.  This discussion contains forward-looking statements that involve risks and uncertainties.  Actual results could differ materially from those anticipated in these forward looking statements as a result of any number of factors, including those set forth in this Quarterly Report and elsewhere in the Company's Annual Report on Form 10-K and other public filings.

All written and oral forward-looking statements made in connection with this Quarterly Report on Form 10-Q that are attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Given the uncertainties that surround such statements, you are cautioned not to place undue reliance on such forward-looking statements.

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Company Overview

NABE is a refiner and producer of commercial-grade biodiesel as specified by the American Society of Testing and Materials (ASTM D6751). Our refining and production facility is located in Lenoir, North Carolina with a nameplate annual capacity of five million gallons.  Our facility produces biodiesel from virgin, agri-based feedstock using commercial specifications. The biodiesel we produce is sold throughout North Carolina, South Carolina and Virginia directly or through wholesale distributors.  Currently, we are engaged in producing biodiesel and strategically purchasing biodiesel from other producers to meet commercial requirements.  We also purify and sell glycerin, which is created as a byproduct of the biodiesel production process. Once the facility has accumulated sufficient glycerin to make full loads, it is typically sold to the market.

Our production process starts with purchasing the most cost effective and suitable agri-based feedstock (e.g., soy, canola, sunflower, cotton seed and chicken/pork fat). A sample of every feedstock is tested by our in-house laboratory in order to develop the proper recipe of catalysts for the transesterification process. The glycerin byproduct is then separated from the biodiesel and any excess methanol is recovered. Recovered methanol is either sold or reused in the production process. Glycerin is sold on the open market as either a crude product or as a further-processed tech grade product. While biodiesel is our main product, glycerin is a popular chemical used in pharmaceutical and hygiene applications and serves as an additional source of revenue.

Our facility is capable of producing biodiesel from a wide range of agri-based feedstocks: soy, canola, sunflower, cotton seed and chicken/pork fat.  Biodiesel production costs are highly dependent on the cost of feedstock, and we believe the ability to utilize a variety of feedstocks efficiently and interchangeably is imperative to gaining a competitive advantage in the biodiesel production market.

Results of Operations

The following is a discussion and analysis of our results of operations for the three and nine-month periods ended September 30, 2016 and 2015, and the factors that could affect our future financial condition.  This discussion and analysis should be read in conjunction with our financial statements and the notes thereto included elsewhere in this report. Our financial statements are prepared in accordance with United States generally accepted accounting principles. All references to dollar amounts in this section are in United States dollars unless expressly stated otherwise.

Revenue and Revenue From Related Parties

The Company generated revenues of $75,243 during the period July 1, 2016 through September 30, 2016. Revenue generated during the period was due to sales of biodiesel, RINs, and materials recovered during glycerin purification processing. During the period July 1, 2016 through September 30, 2016, our biodiesel sales to third parties totaled approximately $42 and our sales to related parties amounted to $74,585. RINs were transferred to the related party for all such sales transacted during the third quarter of 2016. During the glycerin purification process, acid is added to the crude glycerin. As a result, high fatty acid oil separates from the glycerin and yields high fatty acid oil and recovered methanol.  Sales of the recovered methanol sales were $616 for the period under consideration.

The Company generated revenues of $53,538 during the period July 1, 2015 through September 30, 2015. Revenue generated during the period was due to sales of biodiesel, RINs, de-methylated glycerin, and recovered methanol. During the period July 1, 2015 through September 30, 2015, our biodiesel sales to third parties totaled approximately $117 and our sales to related parties amounted to $34,624. RIN sales accounted for $15,015 in revenue during the third quarter of 2015. For the period under consideration, de-methylated glycerin sales amounted to $3,225 while recovered methanol sales totaled $557.

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Comparing the Company's activity for the period July 1, 2016 through September 30, 2016 to the activity for the period July 1, 2015 through September 30, 2015, there was an increase in revenue of $21,705 from $53,538 to $75,243. The period-over-period increase was primarily due to the inclusion of RINs in our biodiesel sales to related parties during the third quarter of 2016, which did not occur during the same period in 2015. Also impacting comparative revenues were sales of de-methylated glycerin and recovered methanol. The Company had de-methylated glycerin sales of $3,225 during the third quarter of 2015, while there were no sales of de-methylated glycerin during the same period in 2016. The Company recognized $557 in recovered methanol sales during the third quarter of 2015, and recognized $616 in recovered methanol sales during the same period in 2016.

The Company generated revenues of $146,422 during the period January 1, 2016 through September 30, 2016. Revenue generated during the period was due to sales of biodiesel, RINs, and materials recovered during glycerin purification processing. Our third party biodiesel sales totaled $2,615 in the first nine months of 2016. We had biodiesel sales to related parties totaling $98,945 during the period under consideration. RIN sales transacted to third parties during the first three quarters of 2016 totaled $43,043. Recovered methanol sales were $1,819 for the period January 1, 2016 through September 30, 2016.

The Company generated revenues of $102,762 during the period January 1, 2015 through September 30, 2015. Revenue generated during the period was due to sales of biodiesel, RINs, and materials recovered during glycerin purification processing. Our third party sales of own-produced biodiesel totaled $3,676 while RIN sales totaled $15,015 in the first nine months of 2015. We had biodiesel sales to related parties totaling $58,424 during the period under consideration. Sales of high fatty acid oil totaled $19,930 while de-methylated glycerin sales totaled $4,571 during the period January 1, 2015 through September 30, 2015. Recovered methanol sales were $1,146 for the period under consideration.

Comparing the Company's activity for the period January 1, 2016 through September 30, 2016 to the activity for the period January 1, 2015 through September 30, 2015, there was an increase in revenue of $43,660 from $102,762 to $146,422. The period-over-period increase was primarily due to RIN sales of $43,043 during the first nine months of 2016 as compared with no RIN sales during the same period in 2015. Third party biodiesel sales totaled $98,945 in the first nine months of 2016, but amounted to $58,424 for the same period in 2015. Also impacting comparative revenues were sales of high fatty acid oil, glycerin, and recovered methanol. The Company had high fatty acid oil sales of $19,930 during the first nine months of 2015 while there were no sales of high fatty acid oil during the same period in 2016. The Company had glycerin sales of $4,571 during the first nine months of 2015, but had no glycerin sales during the same period in 2016. The Company recognized $1,819 in recovered methanol sales during the first three quarters of 2016 and had $1,146 in recovered methanol sales during the same period in 2015.

Cost of Revenue

Cost of revenue totaled $110,782 during the period July 1, 2016 through September 30, 2016. For the same period, cost of revenue consisted of costs associated with raw material (feedstocks, methanol, and catalyst) purchases, labor, overhead, and utilities.

Cost of revenue totaled $115,371 during the period July 1, 2015 through September 30, 2015. For the same period, cost of revenue consisted of costs associated with raw material (feedstocks, methanol, and catalyst) purchases, labor, overhead, and utilities.

Comparing the Company's activity for the period July 1, 2016 through September 30, 2016 to the activity for the period July 1, 2015 through September 30, 2015, there was a decrease in cost of revenues of $4,589 as the cost of revenues decreased from $115,371 to $110,782. The period-over-period decrease was due to operating with a leaner production crew at the biodiesel facility in Lenoir, NC. Comparing the current quarter to the same period in the prior year, feedstock material costs remained steady. When allowable, the Company recognizes a reduction in cost of goods sold resulting from filing for blender tax credits. The Company did not file for any blender tax credits during the third quarter of 2016, nor did we file for any blender tax credits during the same period in 2015.

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Cost of revenue totaled $195,588 during the period January 1, 2016 through September 30, 2016. For the same period, cost of revenue consisted of costs associated with raw material (feedstocks, methanol, and catalyst) purchases, labor, overhead, and utilities.

Cost of revenue totaled $301,113 during the period January 1, 2015 through September 30, 2015. For the same period, cost of revenue consisted of costs associated with raw material (feedstocks, methanol, and catalyst) purchases, labor, overhead, and utilities.

Comparing the Company's activity for the period January 1, 2016 through September 30, 2016 to the activity for the period January 1, 2015 through September 30, 2015, there was a decrease in cost of revenues of $105,525 as the cost of revenues dropped from $301,113 to $195,588. The period-over-period decrease was due to operating with a leaner production crew at the biodiesel production facility in Lenoir, NC.  During the first nine months of 2016, the Company recognized an offset to the cost of goods sold totaling $48,994 as a result of filing for the blender tax credit associated with blended gallons. During the same period in the prior year, the Company recognized an offset to the cost of goods sold totaling $39,312 resulting from blender tax credit activity.

Gross Loss

The Company had a gross loss of $54,563 for the period July 1, 2016 through September 30, 2016.  The primary reason for the gross loss during the period was the Company's inability to produce and sell biodiesel under adverse market conditions, including lower petroleum benchmark prices.

The Company had a gross loss of $85,137 for the period July 1, 2015 through September 30, 2015.  The primary reason for the gross loss during the period was the Company's inability to produce and sell biodiesel under adverse market conditions, including the expired biodiesel blender tax credit.

The Company had a gross loss of $106,156 for the period January 1, 2016 through September 30, 2016.  The primary reason for the gross loss during the period was the Company's inability to produce and sell biodiesel under adverse market conditions, including lower petroleum benchmark prices.

The Company had a gross loss of $273,025 for the period January 1, 2015 through September 30, 2015.  The primary reason for the gross loss during the period was the Company's inability to produce and sell biodiesel under adverse market conditions, including lower petroleum benchmark prices and the expired biodiesel blender tax credit.

Selling, General and Administrative (SG&A) Expenses

SG&A expenses totaled $46,265 for the period July 1, 2016 through September 30, 2016. During the period under consideration, SG&A expenses primarily consisted of costs associated with payroll, office overhead and professional fees.

SG&A expenses totaled $37,427 for the period July 1, 2015 through September 30, 2015. During the period under consideration, SG&A expenses primarily consisted of costs associated with payroll, office overhead and professional fees.

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Comparing the Company's activity for the period July 1, 2016 through September 30, 2016 to the activity for the period July 1, 2015 through September 30, 2015, there was an increase in SG&A expenses of $8,838 as SG&A increased from $37,427 to $46,265. The period-over-period increase was due primarily to legal expenses incurred related to the Company's ongoing litigation.

SG&A expenses totaled $87,289 for the period January 1, 2016 through September 30, 2016. During the period under consideration, SG&A expenses primarily consisted of costs associated with payroll, office overhead and professional fees.

SG&A expenses totaled $436,446 for the period January 1, 2015 through September 30, 2015. During the period under consideration, SG&A expenses primarily consisted of $350,000 in consulting expenses associated with stock based compensation. The balance of the SG&A expenses were comprised of costs associated with payroll, office overhead and professional fees.

Comparing the Company's activity for the period January 1, 2016 through September 30, 2016 to the activity for the period January 1, 2015 through September 30, 2015, there was a decrease in SG&A expenses of $349,157 as SG&A declined from $436,446 to $87,289. The period-over-period decrease was due primarily to the consulting expenses recognized during the first nine months of 2015 that did not occur during the same period in 2016. General overhead remained stable considering the first three quarters of the current year compared with the same period in the prior year.

Other Income (Expense)

Other Income totaled $558 during the period July 1, 2016 through September 30, 2016. During the third quarter of 2016, this amount was attributable to $34 in funding received from the USDA Biofuel Program and to a rebate from our insurance carrier. Each quarter, the Company submits a Payment Request (Form RD-4288) and supporting documents to the USDA delineating those gallons produced/sold. Along with the documentation, the Company informs the USDA regarding the type and quantity of feedstocks utilized.  These payment requests are reviewed by an agent of the USDA and then submitted as part of the "pool" for funding. Biodiesel producers compete for whatever funding is available from the USDA's pool. Since it is difficult to predict the amount of funding that may be received, the Company only recognizes Other Income associated with the USDA Biofuel Program when the funds are received. The additional $524 of Other Income recognized during the current quarter was related to a refund from our insurance carrier.  Our carrier performed an audit of 2015 and determined that we were eligible for a refund. The refund was recorded in Other Income, instead of an offset to insurance expense, since its basis was an audit of a prior year.

Other income totaled $119 during the period July 1, 2015 through September 30, 2015. During the third quarter of 2015, this amount was attributable to funding received from the USDA Biofuel Program. Each quarter, the Company submits a Payment Request (Form RD-4288) and supporting documents to the USDA delineating those gallons produced/sold. Along with the documentation, the Company informs the USDA regarding the type and quantity of feedstocks utilized.  These payment requests are reviewed by an agent of the USDA and then submitted as part of the "pool" for funding. Biodiesel producers compete for whatever funding is available from the USDA's pool. Since it is difficult to predict the amount of funding that may be received, the Company only recognizes Other Income associated with the USDA Biofuel Program when the funds are received.

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Other Income totaled $720 during the period January 1, 2016 through September 30, 2016. During the first nine months of 2016, this amount was attributable to $196 in funding received from the USDA Biofuel Program and from $524 in rebates from our insurance carrier.

Other income totaled $629,997 during the period January 1, 2015 through September 30, 2015. December 31, 2013 marked the expiration of the IRS tax credit of one dollar per blended gallon of biodiesel.  During the first quarter of 2014, NABE sold biodiesel to a customer with the agreement that, in the event the tax credit were to be reinstated, the benefit of the tax credit would be shared equally between the companies.  In late December of 2014, the blender tax credit was reinstated retroactively to January 1, 2014 and was effective through December 31, 2014. The IRS issued guidance for filing for the tax credit during the first quarter of 2015. After the end of the first quarter of 2015, the Company was notified by our customer that they had successfully filed for and received the tax credit funds. NABE has subsequently recognized Other Income and has been paid $510,030 for its half of the blender tax credit dollars. During the period January 1, 2015 through September 30, 2105, Other Income of $119,746 was also recognized on the final insurance settlement from the fire incident experienced August 1, 2014 at the biodiesel plant in Lenoir, NC. Additional Other Income totaling $221 was recognized on funds received which were associated with the USDA Biofuel Program.

Liquidity and Capital Resources

Working Capital

	As of September 30, 2016			As of December 31, 2015
Current Assets	$	22,915		$	149,800
Current Liabilities	$	555,654		$	546,280
Working Capital Deficiency	$	(532,739	)	$	(396,480	)
Accumulated Deficit	$	(6,480,766	)	$	(6,287,517	)

Cash Flows

	Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015
Cash provided by operating activities	$	(60,804	)	$	278,943
Cash used in investing activities		-			(23,268	)
Cash used in financing activities		(9,298	)		(26,632	)
Net increase (decrease) in cash	$	(70,102	)	$	229,043

As of September 30, 2016, our current assets totaling $22,915 consisted of cash, accounts receivable, inventory, other current assets and prepaid expenses.  Our accounts payable and accrued liabilities and current portion of amounts due to related parties and third parties were $555,654 as of September 30, 2016.  As a result, we had a working capital deficiency of $532,739.

Current assets for the Company totaled $149,800 as of December 31, 2015. Current liabilities for the Company totaled $546,280 as of December 31, 2015, which resulted in a working capital deficiency of $396,480.

Comparing the working capital deficiency at September 30, 2016 to the deficiency at December 31, 2015, there was an increase of $136,259 as the deficiency increased from $396,480 to $532,739. The biggest contributor to the overall increase in the deficit was operating in an environment of unfavorable market conditions – lower benchmark petroleum prices while feedstock prices have not reduced commensurately.

On a short-term basis, it is anticipated that the Company's liquidity needs will be met through selling biodiesel related products and RIN-gallons, through borrowing from related parties and through the sale of common stock.  Considering the long-term view, the Company intends to provide liquidity through operation of its biodiesel plant in Lenoir, North Carolina. Since the December 31, 2015 balance sheet date, total receivables have increased $57,233 with no amounts written off.

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To date, cash flow requirements have been primarily met through sales of biodiesel related products, through collections of accounts receivable, through share issuances, and through gross proceeds from bank and related party loans. For the nine months ended September 30, 2016, the Company generated a gross loss of $106,156 on sales of $146,422 over the same period. For the nine months ended September 30, 2015, the Company generated a gross loss of $273,025 on sales of $102,762 over the same period.

A portion of the Company's operations have been funded through the issuance of common stock shares. As of September 30, 2016, the Company has issued 33,754,332 shares of common stock (31,774,332 shares of Class A stock and 1,980,000 shares of Class B stock).

To date, our cash flow requirements have been primarily met by equity financings and from operating the Company's biodiesel production facility in Lenoir, NC. Management expects to keep operational costs to a minimum until cash is available through financing or operating activities. Management plans to continue to seek other sources of financing on favorable terms; however, there are no assurances that any such financing can be obtained on favorable terms, if at all. Our ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.  The outcome of these matters cannot be predicted with any certainty at this time. These factors raise substantial doubt that the Company will be able to continue as a going concern.

Cash Provided By (Used In) Operating Activities

During the period January 1, 2016 through September 30, 2016, the Company's cash used in operating activities totaled $60,804. For the same period, the Company's cash provided by operating activities was primarily attributable to generating trade receivables associated with biodiesel and RIN sales, and making payments on trade payables. Third party trade receivables decreased $28 and related party receivables decreased $57,205 while inventories decreased $3,253. Trade payables increased $6,601 for the same period. Depreciation expense was $56,990 for the first nine months of 2016.

During the period January 1, 2015 through September 30, 2015, the Company's cash provided by operating activities totaled $278,943. For the same period, the Company's cash provided by operating activities was primarily attributable to recognizing $350,000 in consulting expense (stock-based compensation), generating trade receivables associated with biodiesel sales, and making payments on trade payables. Third party trade receivables decreased $2,504 and related party receivables increased $34,037 while inventories increased $18,357. Trade payables decreased $22,257 for the same period. Depreciation expense was $74,674 for the first nine months of 2015.

Cash Used In Investing Activities

During the period January 1, 2016 through September, 2016, the Company had no cash flows related to investing activities.

During the period January 1, 2015 through September 30, 2015, the Company's cash used in investing activities totaled $23,268. The total amount represents funds paid for boiler fan repair and replacement ($2,643), for a petroleum diesel tank/pump set ($1,573), and for storage system enhancements ($19,052) at the NABE facility in Lenoir, NC.

14

Cash Used In Financing Activities

During the period January 1, 2016 through September 30, 2016, the Company's cash flow related to financing activities totaled $9,298. This amount represents funds paid for short-term debt during the current period.

During the period January 1, 2015 through September 30, 2015, the Company's cash used in financing activities totaled $26,632.  This amount represents payments on long-term debt to third-party creditors. Also during the first three quarters of 2015, the Company borrowed $105,929 from a related party and repaid the full amount during the same period.

Future Financings

We anticipate that additional funding will be required in the form of equity financing from the sale of our common stock in order to proceed with our acquisition and expansion plan. However, we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock to fund our marketing and acquisition plans. At this time, we do not have any arrangements in place for any future equity financing.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Recent Accounting Pronouncements

Management does not expect any financial statement impact from any recently-issued pronouncements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this Quarterly Report on Form 10-Q, we conducted an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer ("CEO") of our disclosure controls and procedures (as defined in Rules13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, the CEO concluded that our disclosure controls and procedures were not effective as of September 30, 2016.  We have identified the following material weaknesses in our internal control over financial reporting:

Lack of Independent Board of Directors and Audit Committee

Management is aware that an audit committee composed of the requisite number of independent members along with a qualified financial expert has not yet been established.  Considering the costs associated with procuring and providing the infrastructure to support an independent audit committee and the limited number of transactions, management has concluded that the risks associated with the lack of an independent audit committee are not sufficient to justify the creation of such a committee at this time.  Management will periodically reevaluate this situation.

15

Deficiencies in Our Control Environment.

Our control environment did not sufficiently promote effective internal control over financial reporting throughout the organization. This material weakness exists because of the aggregate effect of multiple deficiencies in internal control which affect our control environment, including: a) the lack of an effective risk assessment process for the identification of fraud risks; b) the lack of an internal audit function or other effective mechanism for ongoing monitoring of the effectiveness of internal controls; c) deficiencies in our accounting system and controls; d) and insufficient documentation and communication of our accounting policies and procedures as of September 30, 2016.

Deficiencies in the staffing of our financial accounting department.

The number of qualified accounting personnel with experience in public company SEC reporting and GAAP is limited. This weakness does not enable us to maintain adequate controls over our financial accounting and reporting processes regarding the accounting for non-routine and non-systematic transactions. There is a risk that a material misstatement of the financial statements could be caused, or at least not be detected in a timely manner, by this shortage of qualified resources.

Deficiencies in Segregation of Duties.

The limited number of qualified accounting personnel results in an inability to have independent review and approval of financial accounting entries. Furthermore, management and financial accounting personnel have wide-spread access to create and post entries in our financial accounting system. There is a risk that a material misstatement of the financial statements could be caused, or at least not be detected in a timely manner, due to insufficient segregation of duties.

Because of its inherent limitation, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Our financial accounting staff is actively attending and receiving training. Management is still determining additional measures to remediate deficiencies related to staffing.

(b) Changes in Internal Controls Over Financial Reporting

There were no changes that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

In the Court of Common Pleas of the State of South Carolina's Thirteenth Judicial Circuit (Greenville County), a Plaintiff has filed suit against the Company and its subsidiary, NABE. The filing took place in June of 2015. In its filing, the Plaintiff claims to be a subsidiary of a foreign biodiesel producer with which NABE transacted import activities during 2013 and 2014. The Plaintiff further claims that the Company did not have the right to retain the $510,030 that was received and recognized as Other Income during the second quarter of 2015. An agreement signed with a customer in 2014 allowed the Company to retain and recognize this income, which was dependent upon reinstatement of the federal biodiesel blender tax credit. Subsequent to our agreement with the customer, the blender tax credit was retroactively reinstated. The Company recognized the Other Income when the customer, after having successfully filed for the credit, remitted payment to the Company. The Company believes that the Plaintiff's actions are unfounded and that there is remote likelihood of incurring any liability. The Company is vigorously defending the action.

16

ITEM 1A. RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. OTHER INFORMATION

None.

ITEM 5. EXHIBITS The following documents are filed as a part of this report or are incorporated by reference to previous filings, if so indicated:

Exhibit No.	Description
3.1	Articles of Incorporation (1)
3.2	Bylaws (1)
31.1	Section 302 Certification of CEO*
31.2	Section 302 Certification of Principal Financial Officer *
32.1	Section 906 Certification of CEO*
32.2	Section 906 Certification of Principal Financial Officer*

*filed herewith

(1) Incorporated by reference to the Form S-1 registration statement filed on June 30, 2008.

17

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

November 14, 2016

By:

INCOMING, INC.

/s/ R. Samuel Bell, Jr.

R. Samuel Bell, Jr., CEO and Chairman, Board of Directors

/s/  Eric Norris

Vice President, Finance (Principal Financial Officer)

18

EX-31.1

Exhibit 31.1

SARBANES-OXLEY SECTION 302(a) CERTIFICATION

I, R. Samuel Bell, Jr., certify that:

1.	I have reviewed this quarterly report on form 10-Q for the period ended September 30, 2016 of Incoming, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13(a)-15(e) and 15d-15(e) and internal control over financial reporting (as defined in the Exchange Act Rules 13(a)-15(f) and 15d-15(f)) for the registrant and have:
	a.		Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.		Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c.		Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.		Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a.		All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b.		Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date:		November 14, 2016		/s/ R. Samuel Bell, Jr.
				R. Samuel Bell, Jr., CEO

EX-31.2

Exhibit 31.2

SARBANES-OXLEY SECTION 302(a) CERTIFICATION

I, Eric Norris, certify that:

1.	I have reviewed this quarterly report on form 10-Q for the period ended September 30, 2016 of Incoming, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13(a)-15(e) and 15d-15(e) and internal control over financial reporting (as defined in the Exchange Act Rules 13(a)-15(f) and 15d-15(f)) for the registrant and have:
	a.		Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.		Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c.		Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.		Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a.		All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b.		Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date:		November 14, 2016		/s/ Eric Norris.
				Eric Norris, Vice President, Finance (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO18 U.S.C. Section 1350,AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

     In connection with the Quarterly Report of Incoming, Inc. (the "Company") on Form 10-Q for the period ended September 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "report"), I, R. Samuel Bell, Jr., Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934; and

(2)The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated this 14^th day of November, 2016.

/s/ R. Samuel Bell, Jr.

R. Samuel Bell, Jr., CEO

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO18 U.S.C. Section 1350,AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

     In connection with the Quarterly Report of Incoming, Inc. (the "Company") on Form 10-Q for the period ended September 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "report"), I, Eric Norris, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934; and

(2)The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated this 14^th day of November, 2016.

/s/ Eric Norris

Eric Norris, Vice President, Finance

(Principal Financial Officer)

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 14, 2016
Entity Registrant Name	Incoming, Inc.
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Entity Central Index Key	0001423325
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		33,754,332
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Entity Incorporation, Date of Incorporation	Dec. 22, 2006
Trading Symbol	icnn

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2016		Dec. 31, 2015
Current Assets
Cash	$ 1,394		$ 71,496
Accounts receivable, trade, net	222		250
Accounts receivable, related party	0		57,205
Inventory	12,065		15,318
Prepaid expenses	8,834		5,131
Other current assets	400		400
Total current assets	22,915		149,800
Property and equipment, net	567,797		624,787
Total Assets	590,712		774,587
Current Liabilities
Accounts payable	212,097		205,496
Current maturities of debt	5,782		3,286
Accrued liabilities	61,597		61,320
Accounts payable - related parties	276,178		276,178
Total current liabilities	555,654		546,280
Total Liabilities	555,654		546,280
Capital stock $.001 par value; 200,000,000 shares authorized	33,754		33,754
Additional paid in capital	6,482,070		6,482,070
Accumulated deficit	(6,480,766)		(6,287,517)
Total Stockholders' Equity	35,058		228,307
Total Liabilities and Stockholders' Equity	590,712		774,587
Class A
Current Liabilities
Capital stock $.001 par value; 200,000,000 shares authorized	31,774	[1]	31,774
Convertible Class B
Current Liabilities
Capital stock $.001 par value; 200,000,000 shares authorized	$ 1,980	[2]	$ 1,980

[1] 31,774,332 shares issued and outstanding, respectively

[2] 1,980,000 shares issued and outstanding

XML

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares Issued	0	0
Common Stock, Shares Outstanding	0	0
Class A
Common Stock, Shares Issued	31,774,332	31,774,332
Common Stock, Shares Outstanding	31,774,332	31,774,332
Convertible Class B
Common Stock, Shares Issued	1,980,000	1,980,000
Common Stock, Shares Outstanding	1,980,000	1,980,000

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue	$ 658	$ 18,914	$ 47,477	$ 44,338
Revenue from related parties	74,585	34,624	98,945	58,424
Total revenue	75,243	53,538	146,422	102,762
Cost of revenue	110,782	115,371	195,588	301,113
Depreciation	19,024	23,304	56,990	74,674
Gross loss	(54,563)	(85,137)	(106,156)	(273,025)
Selling, General, and Administrative Expenses	46,265	37,427	87,289	436,446
Loss from Operations	(100,828)	(122,566)	(193,445)	(709,471)
Other income (expense)
Grant and other income	558	119	720	629,997
Interest expense	(147)	(111)	(524)	(1,051)
Total other income (expense)	411	8	196	628,946
Net Loss	$ (100,417)	$ (122,556)	$ (193,249)	$ (80,525)
Class A
Other income (expense)
Net Loss per Common Share (Basic and Diluted)	$ (0.00)	$ (0.00)	$ (0.01)	$ (0.00)
Weighted Average Number of Common Shares Outstanding (Basic and Diluted)	31,774,332	31,774,332	31,774,332	31,325,614
Class B
Other income (expense)
Net Loss per Common Share (Basic and Diluted)	$ (0.05)	$ (0.06)	$ (0.10)	$ (0.04)
Weighted Average Number of Common Shares Outstanding (Basic and Diluted)	1,980,000	1,980,000	1,980,000	1,980,000

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from operating Activities
Net (loss)	$ (193,249)	$ (80,525)
Adjustments to reconcile net loss to net cash provided by operations:
Depreciation	56,990	74,674
Stock-based compensation	0	350,000
Changes in operating assets and liabilities
Accounts receivable	28	2,504
Accounts receivable - related party	57,205	(34,037)
Prepaid expenses	8,091	1,463
Inventory	3,253	(18,357)
Accounts payable	6,601	(22,257)
Accrued liabilities	277	5,478
Net cash provided by (used in) operating activities	(60,804)	278,943
Cash flows from investing activities
Purchase of fixed assets	0	(23,268)
Net cash used in investing activities	0	(23,268)
Cash flows from financing activities
Proceeds from related party debt	0	105,929
Payments on related party debt	0	(105,929)
Principal payments on debt	(9,298)	(26,632)
Net cash used in financing activities	(9,298)	(26,632)
Net cash increase (decrease) for period	(70,102)	229,043
Cash at beginning of period	71,496	344
Cash at end of period	1,394	229,387
Supplemental disclosure of cash flow information
Cash paid for interest	524	1,051
Cash paid for income taxes	226	493
Non-cash financing transactions
Prepaid expense financed with notes payable	11,794	7,071
Write-off of fully depreciated assets	$ 0	$ 134,830

XML

Note 1 Basis of Presentation, Organization, and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2016

Notes

Note 1 Basis of Presentation, Organization, and Summary of Significant Accounting Policies

Note 1     Basis of Presentation, Organization, and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements of Incoming, Inc., a Nevada corporation, have been prepared in accordance with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim financial information and, therefore, do not include all disclosures normally required by generally accounting principles accepted in the United States of America. These statements should be read in conjunction with the Company's most recent annual financial statements for the year ended December 31, 2015 included in our Annual Report on Form 10-K filed with the SEC on April 12, 2016. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying financial statements for the period ended September 30, 2016 are not necessarily indicative of the operating results that may be expected for the full year ending December 31, 2016.

Organization

Incoming, Inc. ("we" or the "Company") was incorporated on December 22, 2006 in Nevada.  Through our wholly-owned subsidiary North American Bio-Energies LLC ("NABE"), we operate in the alternative energy industry in the development and acquisition of commercial grade biodiesel facilities and the distribution and marketing of petroleum and biofuel products. In addition to operating as NABE, our subsidiary also does business as Foothills Bio-Energies, LLC ("Foothills").

XML

Note 2 Going Concern

9 Months Ended

Sep. 30, 2016

Notes

Note 2 Going Concern

Note 2     Going Concern

These financial statements have been prepared on a going concern basis.  As of September 30, 2016, the Company had a working capital deficiency of $532,739, and had an accumulated deficit of $6,480,766.  Its ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.  The outcome of these matters cannot be predicted with any certainty at this time. These factors raise substantial doubt that the Company will be able to continue as a going concern.  The Company to date has funded its initial operations through the issuance of capital stock and common stock options, loans from related parties, and revenue generated in the normal course of business. Management plans to continue to provide for its capital needs by the issuance of common stock and related party advances.  These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.

XML

Note 3 Related Party Transactions

9 Months Ended

Sep. 30, 2016

Notes

Note 3 Related Party Transactions

Note 3     Related Party Transactions

NABE sells a portion of its finished goods to Echols Oil Company, a company owned by our CEO, R. Samuel Bell, Jr. During the nine months ended September 30, 2016, the Company had sales to the related company totaling $98,945. As of September 30, 2016, the Company had no outstanding receivables from the related party company. As of September 30, 2016, the Company had outstanding payables to Echols totaling $1,262, and had $274,916 in related party payables to Green Valley Bio-Fuels.  Green Valley Bio-Fuels is considered a related party since it is majority-owned by Mr. Frank A. Gay, who sits on the Company's Board of Directors.

XML

Note 1 Basis of Presentation, Organization, and Summary of Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2016
Details
Entity Incorporation, Date of Incorporation	Dec. 22, 2006

XML

Note 2 Going Concern (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Details
Working Capital (deficit)	$ (532,739)
Accumulated deficit	$ (6,480,766)	$ (6,287,517)

XML

Note 3 Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Sales	$ 75,243	$ 53,538	$ 146,422	$ 102,762
Outstanding receivables	0		0		$ 57,205
Outstanding payables	276,178		276,178		$ 276,178
Echols Oil Company
Outstanding payables	1,262		1,262
Chief Executive Officer | Echols Oil Company
Sales			98,945
Green Valley Bio Fuels
Outstanding payables	$ 274,916		$ 274,916